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Top brokers name 3 ASX shares to sell today

On Thursday I looked at a few shares that have found favour with brokers and been given buy ratings this week.

Today I thought I would look at a few shares that have fallen out of favour and been given sell ratings by brokers.

Three that caught my eye are listed below. Here’s why they are tipped as sells:

ALS Ltd (ASX: ALQ)

According to a note out of Deutsche Bank, it has downgraded the testing services company’s shares to a sell rating with a $6.99 price target. The broker made the move due to concerns over the company’s resources business’ ability to sustain growth above the industry average. Further, the broker believes that its Life Sciences segment is being impacted by price pressures in key markets. As such, it thinks that ALS’ shares are expensive given its current growth profile. I would have to agree with Deutsche Bank on this one and suggest investors stay clear of ALS until it trades on a fairer valuation.

Myer Holdings Ltd (ASX: MYR)

A note out of UBS reveals that its analysts have retained their sell rating and cut the price target on the embattled department store operator’s shares down to 37 cents. The broker cut its price target after Myer’s recent sales update came in below expectations. UBS appears to have been surprised by the weakness after the company had previously noted improved second half sales trends. I don’t think Myer’s shares are investment grade anymore and would suggest investors follow the advice of UBS.

Treasury Wine Estates Ltd (ASX: TWE)

Analysts at Citi have retained their sell rating and $13.30 price target on the wine company’s shares following recent reports of a supply glut in China. The broker doesn’t appear overly concerned by the reports and has retained its sell rating on valuation grounds. Citi doesn’t believe that Treasury Wine Estates’ valuation is befitting of its current growth profile and points to its reliance on margin expansion rather than sales/volume growth as a concern. While I think Citi makes some valid points, I wouldn’t be a seller of shares if I owned them and would even consider buying some on recent weakness.

While those may be sell-rated shares, these top stocks are certainly buy-rated in my opinion.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Treasury Wine Estates Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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